Ladbrokes nears deal with Betdaq

Ladbrokes has entered the final furlong in protracted talks to buy Betdaq, the
betting exchange, as the bookmaker’s chief executive Richard Glynn makes a
fifth attempt to boost its laggard online business.

Ladbrokes last year issued a profit warning on its digital division and delayed the transfer of customers over to a new websitePhoto: Alamy

The UK bookie confirmed in the summer that it was in talks with Betdaq but it is believed a deal, valued at around £30m, is nearing the final stages and could be announced in the next month. Betdaq is owned by Irish billionaire Dermot Desmond.

Speculation that Ladbrokes was seeking to buy Betdaq has been circulating since January last year when the two companies struck a technology deal.

Mr Desmond – majority shareholder of Celtic Football Club – also holds a stake, thought to be between 2pc and 3pc, in Ladbrokes.

If the deal comes off it would be a case of fifth time lucky for Mr Glynn, who walked away from acquisition talks with both 888 Holdings and Sportingbet, the latter falling to William Hill and GVC Holdings for £485m last month. Mr Glynn also looked at Australia’s Centrebet and Playtech.

A £50m strategy to develop Ladbrokes’ online business organically has been beset by delays and analysts warned Mr Glynn would likely have to return to the acquisition trail to close a yawning digital gap with rivals.

Simon French, an analyst at Panmure Gordon, said the acquisition of the reportedly loss-making Betdaq would give Ladbrokes “broader product reach” and would potentially reduce “leakage” of customers away to betting exchange Betfair.

But he warned the move would not resolve all of the issues at Ladbrokes’ digital business.

Mr French added “significant investment in product and marketing would likely be required for Betdaq to become a material profit contributor .”

“Negotiations are ongoing though at this stage there is no certainty that an agreement will be reached.”

Ladbrokes last year issued a profit warning on its digital division and delayed the transfer of customers over to a new website, originally due to launch before the Euro 2012 football championships, until the end of March.

But the group has been buoyed by a continued strong performance from its high street betting shops.